PURPOSE: to improve the effectiveness of multiannual financial guidelines for managing the assets of the ECSC in liquidation and, on completion of the liquidation, the Assets of the Research Fund for Coal and Steel, by adapting them to new market elements and clarifying certain concepts.

LEGISLATIVE ACT: Council Decision 2008/750/EC amending Decision 2003/77/EC laying down multiannual financial guidelines for managing the assets of the ECSC in liquidation and, on completion of the liquidation, the Assets of the Research Fund for Coal and Steel.

CONTENT: following the expiry of the ECSC Treaty on 23 July 2002, the management of the assets of the ECSC in liquidation and the Assets of the Research Fund for Coal and Steel was entrusted to the Commission. In this context, the Financial Guidelines laid down for the management of the assets of the ECSC in liquidation and, upon completion of the liquidation, the Assets of the Research Fund for Coal and Steel have been reviewed in accordance with Council Decision 2003/77/EC.

The adopted amendments are the result of this first assessment and aim to improve the effectiveness of the financial guidelines by adapting them to new market elements and clarifying certain concepts. The amended guidelines reflect standard market practice and definitions as regards, inter alia, the maturity concepts used, equivalent securities in the case of repurchase agreements and applicable ratings. They take into account the changes in the accounting rules of the Commission.

Subject to rating requirements, certain public entities should be assimilated to Member States or other sovereigns in the context of the investment limits.

Lastly, for reasons of efficiency and in order to reduce administrative costs, the frequency of reporting has been adapted.

ENTRY INTO FORCE: 24/09/2008.

The European Parliament adopted, by 551 votes to 44 with 10 abstentions, a legislative resolution under the consultation procedure, approving the proposal for a Council decision amending Decision 2003/77/EC laying down multiannual financial guidelines for managing the assets of the ECSC in liquidation and, on completion of the liquidation, the Assets of the Research Fund for Coal and Steel.

The report had been tabled for consideration in plenary by Reimer BÖGE (EPP-ED, DE) on behalf of the Committee on Budgets.

The Committee on Budgets adopted a report drawn up by Reimer BOGE (EPP-ED, D) and approved, without amendment, the proposal for a Council decision amending Decision 2003/77/EC laying down multiannual financial guidelines for managing the assets of the ECSC in liquidation and, on completion of the liquidation, the Assets of the Research Fund for Coal and Steel.

PURPOSE: to amend the multiannual financial guidelines for managing the assets of the ECSC in liquidation.

PROPOSED ACT: Council Decision

CONTENT: following the expiry of the ECSC Treaty on 23 July 2002, management of the assets of the ECSC in liquidation and, upon completion of the liquidation, the Assets of the Research Fund for Coal and Steel were entrusted to the Commission.

In this context, the Financial Guidelines laid down for the management of the assets of the ECSC in liquidation and, upon completion of the liquidation, the Assets of the Research Fund for Coal and Steel have been reviewed in accordance with Article 2 of Council Decision 2003/77/EC.

Following this review, a number of minor changes to the Financial Guidelines are proposed. The changes reflect the experience gained in the first five years of operation, developments in the financial markets in which ECSC in liquidation operates and finally the change to internationally accepted accounting rules for the Commission as a whole.

There are clarifications of several definitions, namely the maturity concept of a bond, which is refined to cover the definition used by asset-backed securities (ABS), the definition of government issued or government guaranteed securities and the definition of "debt" issued by banks. The rules for sale and repurchase operations are brought up to market standards. In addition, certain rating-related provisions are clarified and the maximum maturity permitted is extended to take account of the changing issuance pattern of the Member States.

On the issue of reporting, it has therefore been proposed to send reports on a six-monthly basis which would be more efficient both for the Member States, allowing them to give enhanced attention to a less frequent report, and for the Commission by reducing its administrative costs.

PURPOSE: to amend the multiannual financial guidelines for managing the assets of the ECSC in liquidation.

PROPOSED ACT: Council Decision

CONTENT: following the expiry of the ECSC Treaty on 23 July 2002, management of the assets of the ECSC in liquidation and, upon completion of the liquidation, the Assets of the Research Fund for Coal and Steel were entrusted to the Commission.

In this context, the Financial Guidelines laid down for the management of the assets of the ECSC in liquidation and, upon completion of the liquidation, the Assets of the Research Fund for Coal and Steel have been reviewed in accordance with Article 2 of Council Decision 2003/77/EC.

Following this review, a number of minor changes to the Financial Guidelines are proposed. The changes reflect the experience gained in the first five years of operation, developments in the financial markets in which ECSC in liquidation operates and finally the change to internationally accepted accounting rules for the Commission as a whole.

There are clarifications of several definitions, namely the maturity concept of a bond, which is refined to cover the definition used by asset-backed securities (ABS), the definition of government issued or government guaranteed securities and the definition of "debt" issued by banks. The rules for sale and repurchase operations are brought up to market standards. In addition, certain rating-related provisions are clarified and the maximum maturity permitted is extended to take account of the changing issuance pattern of the Member States.

On the issue of reporting, it has therefore been proposed to send reports on a six-monthly basis which would be more efficient both for the Member States, allowing them to give enhanced attention to a less frequent report, and for the Commission by reducing its administrative costs.